Iqiyi (IQ) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: N/A
• Average Volume (3M): 10.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -10.68%
• EPS Growth: -127.54%
• Country: US
• Employees: 4,673
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.02
• Shares Outstanding: 528,516,360
• 10 Day Avg. Volume: 10,859,494
• 30 Day Avg. Volume: 10,394,169
• PEG Ratio: -0.31
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 7.52
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.67
• Enterprise Value/Ebitda: 0.87
• 1Y Price Target: $2.38
• Price Target Upside: 10.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $2.50 ▲(16.28% Upside)

The overall stock score of 51 reflects significant financial challenges, including declining revenues and profitability pressures, which weigh heavily on the score. However, positive sentiment from the earnings call, driven by international growth and AI integration, provides some optimism. The technical analysis and valuation scores indicate a neutral to slightly negative outlook, with no immediate signs of recovery.

Positive Factors

International Growth

Strong international growth, particularly in markets like Brazil and Indonesia, indicates successful global expansion and diversification of revenue streams.

AI Integration

AI integration in content production enhances efficiency and innovation, positioning iQIYI at the forefront of technological advancements in entertainment.

Content Production Success

Successful original content boosts brand recognition and subscriber engagement, strengthening iQIYI's competitive position in the streaming market.

Negative Factors

Revenue Decline

A decline in revenue reflects challenges in maintaining growth momentum, potentially impacting long-term financial stability and market confidence.

High Leverage

High leverage increases financial risk, limiting flexibility in strategic investments and potentially affecting creditworthiness.

Weak Cash Flow

Weak cash flow generation hinders the company's ability to fund operations and invest in growth opportunities, posing a risk to long-term sustainability.

Iqiyi Business Overview & Revenue Model

Company Description

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People's Republic of China. The company offers various products and services comprising internet video, online games, live broadcasting, online literature, animations, e-commerce, and social media platform. It operates a platform that provides a collection of internet video content, including professionally-produced content licensed from professional content providers and self-produced content. The company also provides membership, content distribution, and online advertising services. In addition, it operates iQIYI Show, a live broadcasting service that enables users to follow their favorite hosts, celebrities, and shows in real time through live broadcasting; and iQIYI Lite, an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu Holdings Limited.

How the Company Makes Money

Iqiyi generates revenue through multiple streams, primarily from subscription fees, advertising, and content licensing. The subscription model allows users to access premium content for a monthly fee, creating a stable revenue base. Advertising revenue is generated through ad placements on the free version of their platform, where advertisers pay to reach audience segments. Additionally, Iqiyi earns money through partnerships and content licensing agreements, selling the rights to its original content to other platforms or networks. The company also invests in producing exclusive content, which can boost viewer engagement and attract new subscribers, further enhancing its revenue potential.

Iqiyi Financial Statement Overview

Summary

Iqiyi faces significant financial challenges, with declining revenues and profitability pressures. High leverage and weak cash flow generation further exacerbate risks. While there are slight improvements in some areas, the overall financial health remains concerning, requiring strategic actions to stabilize and improve performance.

Income Statement

Iqiyi's income statement shows a declining revenue trend with a negative growth rate in the TTM period. The gross profit margin has decreased from previous years, indicating pressure on profitability. The net profit margin is slightly positive in the TTM period, but overall profitability remains weak with a history of losses. The EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. Although the return on equity has improved slightly in the TTM period, it remains low, suggesting limited returns for shareholders. The equity ratio is moderate, but the high debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. While the free cash flow to net income ratio is relatively high, the overall cash flow position is weak, with negative growth trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.11B	29.23B	31.87B	29.00B	30.55B	29.71B
Gross Profit	5.95B	7.27B	8.77B	6.68B	3.04B	1.82B
EBITDA	4.58B	1.82B	17.25B	14.34B	12.10B	11.28B
Net Income	-389.85M	764.06M	1.93B	-136.21M	-6.19B	-7.01B
Balance Sheet
Total Assets	45.79B	45.76B	44.59B	46.05B	42.47B	48.19B
Cash, Cash Equivalents and Short-Term Investments	4.07B	4.47B	5.38B	7.92B	4.35B	14.27B
Total Debt	14.74B	14.19B	15.29B	22.53B	17.57B	22.18B
Total Liabilities	32.45B	32.39B	32.41B	39.70B	36.80B	38.85B
Stockholders Equity	13.34B	13.37B	12.09B	6.25B	5.19B	9.26B
Cash Flow
Free Cash Flow	465.53M	1.94B	3.25B	-340.34M	-6.35B	-5.80B
Operating Cash Flow	577.65M	2.11B	3.35B	-70.57M	-5.95B	-5.41B
Investing Cash Flow	-276.14M	-2.44B	-1.74B	265.98M	1.26B	159.30M
Financing Cash Flow	660.45M	-1.37B	-4.29B	4.47B	-2.96B	9.37B

Iqiyi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQ, the sentiment is Negative. The current price of 2.15 is below the 20-day moving average (MA) of 2.18, below the 50-day MA of 2.31, and above the 200-day MA of 2.10, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 65.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQ.

Iqiyi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIS	76 Outperform	$184.65B	15.10	11.78%	0.95%	3.61%	152.34%
WBD	70 Outperform	$59.17B	127.29	1.36%	―	-4.29%	―
NFLX	69 Neutral	$449.75B	44.34	42.86%	―	15.49%	35.54%
ROKU	65 Neutral	$14.13B	―	-1.09%	―	16.61%	83.98%
WMG	63 Neutral	$14.63B	40.38	61.97%	2.64%	4.37%	-16.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IQ	51 Neutral	$2.14B	―	-2.91%	―	-10.68%	-127.54%

Iqiyi Corporate Events

iQIYI Reports Q3 2025 Financial Results with Revenue Decline

On November 18, 2025, iQIYI announced its financial results for the third quarter ending September 30, 2025, reporting a total revenue of RMB6.68 billion, an 8% decrease year-over-year. The company faced a net loss of RMB248.9 million compared to a net income in the same period of 2024, attributed to a lighter content slate and changes in business cooperation arrangements. Despite these challenges, iQIYI maintained its leadership in the domestic drama viewership market and saw growth in its overseas operations, driven by successful drama hits and a strategic focus on expanding its IP-centric business model.